Payment of more than 20000

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chanda

chanda (Querist)
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27 July 2015 IS FIRM CAN GIVE AMOUNT MORE THAN 20000 IN CASH TO ITS PARTNER?

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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27 July 2015 No. It will be a violation of sec 269SS &269T

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chanda

chanda (Querist)
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27 July 2015 Is it make difference if amount is paid in partners current A/C??????

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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28 July 2015 Even in that case also.

The section specifically says that. I.e, repayment or acceptance of loans should be through account payee cheque/account payee DD/electronic mode only.
All other modes are violation.

chanda

chanda (Querist)
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28 July 2015 but payment was not related to loan ..it was just profit sharing to partner..then whether provisions of 20000 will apply or not?????

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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29 July 2015 No problem. Even then, it is not advisable. All those things are under litigation.
As a safe measure, pay it by account payee cheque/ Account payee DD or Electronic Mode.

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